DEPUTY Speaker of the National Assembly, Mussa Azzan Zungu, has asked the President Office (Regional Administration and Local Government) to diligently manage the 10 percent loan scheme for at local councils, saying there are complaints that the funds do not reach intended persons.

Zungu made the call in the National Assembly yesterday while contributing to a discussion raised by Special Seats MP Sylvia Gisula who sought to know when the government would resume providing the 10 percent loans previously given to youth, women and people with disabilities.

He said there are complaints from group members seeking loans from the local councils particularly loan managers mistreating them.

He emphasised that councils set aside 10 percent of their internal revenues as revolving funds to assist Tanzanians, so, it is crucial that the funds be distributed fairly without any discrimination.

“Please try to follow up on this issue and warn anyone involved in mistreating some people because the funds are meant for needy groups,” he said.

Zainab Katimba, Deputy Minister of state in the President's Office (Regional Administration and Local Government) instructed the committees overseeing the loans to fulfil their responsibilities and ensure that groups applying for loans receive the same promptly.

She also instructed relevant leaders at ward, council, district and regional levels to fulfil their duties so that the funds benefit the groups for their economic activities.

According to the regulations, groups applying for loans must receive the money within two months after completing all procedures.

“I would like to emphasise that all committees formed for the management of the 10 percent loans must fulfil their duties according to the regulations,” she said, explaining that, according to the regulations governing the 10 percent loan scheme, a group receives loan collectively as collateral but members of the group are allowed to use the loan for their individual projects.

“The government understands that there are youth who wish to carry out their own projects; that was the reason to include the provision in the regulations. The group loans serve as collateral, but each group member may establish any project of their own choice,” she clarified.

As of December 2024, 64 councils had disbursed loans amounting to 22.07bn/- out of 27.76bn/- requested by 2,726 groups of women, youth, and people with disabilities.

Of the total amount, 21.88bn/- came from the local councils’ 10 percent contributions and 194.3m/- was loan repayments.